Local gold prices surged to record highs last week, with 21 carat gold reaching EGP 1.8k for the first time ever
Local gold prices surged to record highs last week, with 21 carat gold reaching EGP 1.8k for the first time ever. Demand for the commodity has ballooned in the wake of October’s EGP devaluation which has seen the currency fall almost 25% against the USD. In response, merchants have stopped pricing the precious metal amid confusion about the price of USD, sending the market into a tailspin. We speak to industry professionals about why this has happened as well as larger problems the gold industry has faced in recent years. (Hapi Journal)
- There are currently five large factories and 1.5k gold workshops in Cairo
Roughly the same number of workshops are also spread across all other governorates in the country. Collectively, these facilities employ a total of 250k people. The industry had not so long ago seen a boom in manufacturing and design techniques: Factories outfitted with Swiss and Italian machines in recent years have helped boost the production of gold goods that have drawn interest in gold at international gold exhibitions. (Hapi Journal)
- El Rashidi El Mizan to embark on 150 million USD expansion next year
Leading confectionery producer El Rashidi El Mizan, a subsidiary of Saudi-owned investment group Olayan, will invest USD 150 mn in 2H 2023 to expand production in Egypt, Sherif William, the company’s director of commercial sales said. The company will add six new production lines during the six-month period, which is part of a broader five-year expansion plan, he said. El Rashidi El Mizan plans to produce new products, William said, without providing further details. (Al Borsa News)
- Xiaomi chooses between 2 Egyptian cities for new factory
China’s cell phones manufacturer Xiaomi is choosing between two Egyptian cities; the 10th of Ramadan or the 6th of October, to build a factory over the next period. Xiaomi is planning to manufacture its products in Egypt by using up to 45% of local components, the sources said, adding that part of the output would be exported after meeting the local demand. They also noted that the Chinese company considers direct manufacturing of the products or assigning the production process to its local agent Al Safy Group. (Al-Mal)
- Tutera, an Egyptian creative community hub, has launched phase one of the first Egyptian meta-city, Metatut
The city is inspired by the ancient Egyptian civilization and revives King Tutankhamun in a futuristic setting. The second phase of the city is set to launch tomorrow, with the third phase slated for launch on 21 December, everything that visitors and locals need to go about their everyday lives will be integrated into Metatut, such as housing, education, and entertainment venues. (Al Monitor)
- GB Auto has sold a 7.5% stake in MNT to Chimera
GB Auto has finalized the sale of a 7.5% stake in MNT Investments to Abu Dhabi-based investment firm Chimera Investments. The GB Capital subsidiary now owns a 49.5% stake in the Netherlands-based payments company. The transaction has been implemented with 60 million USD in proceeds. The deal includes an earnout component that could potentially bring total proceeds to 71.3 million in case certain conditions were fulfilled. MNT Investments indirectly holds a majority stake in Mashroey Trading Co and Tasaheel Microfinance Company, along with indirect ownership in other fintech companies. (Arab Finance)
- Vodacom concludes acquisition of 55% stake in Vodafone Egypt
South African mobile operator Vodacom Group completed the acquisition of 55% of Vodafone Egypt for around 59.6 billion EGP through ownership transfer. The transaction was executed on 132 million of Vodafone Egypt’s shares on the Egyptian Exchange’s (EGX) over-the-counter market on Thursday, December 8th. EFG Hermes Holding (HRHO) acted as the broker and the sole arranger of the ownership transfer. (Al-Mal)
- El Rashidi El Mizan to start 150 million USD expansion plan in H2 2023
The company devised a plan to increase the number of production lines over the next five years. The first phase of the expansion plan includes the addition of six new lines with 150 million USD in investments during H2 2023. After the new lines become operational, the company will consider new areas and products. The total monthly production capacity of El-Rashidi El-Mizan amounts to 5,000 tons of halva, jam, molasses, and tahini, adding that the company aims to double its production capacity after the new lines become operational. (Arab Finance)
- Network International, QNB Al Ahli ink 10-year contract to support digital transformation
The agreement comes as part of the bank’s digital-first strategy to improve its proposition to customers and reinforce its presence in the Egyptian market. Network International will help QNB Al Ahli to provide digital payment solutions, including cards and next-gen e-commerce solutions. Moreover, the bank will have access to Network’s expertise in holistic solutions for the North African market, while benefiting from the company’s advanced digital infrastructure and robust security protocols, avoiding the need to invest in payment processing infrastructure. (Al Mal)
- HCFI receives 7 bids for partnership in 3 industrial complexes
Holding Company for Food Industries (HCFI) received seven bids from international and local companies for partnership in three cooking oil complexes. The first complex will be built on 137,000 square meters (sqm) in Borg Al Arab city, while the second is planned to be built on 120,000 sqm in Sohag. The third complex is set to be built in the Amreya district in Alexandria, he added on the sidelines of the International Nebu Expo for Gold and Jewelry 2022. The bids are expected to be awarded within a month, he noted, adding that HCFI’s share in the project with the private sector amounts to 76%. (Al Mal)
- Egypt considers launching international oil, natural gas exploration tender year-end
Egypt’s Egypt is planning to launch an international tender for natural gas and oil exploration in the Mediterranean Sea and the Western Desert before the end of 2022. The US-based Chevron Corporation made a new oil discovery in Egypt and assessments of the confirmed reserves were underway. The results of these assessments would be announced during the first quarter (Q3) of 2023. (Asharq Business)
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